To be honest, I am not a fan of criticizing the domestic policy of another state when the domestic policy of my own state is also, to put it mildly, not very adequate, but recently I came across an article from the Ukrainian online publication 'Economic Truth':
The evening of January 18, 2025, Washington, D.C. Just a few days before the inauguration of the 47th president of the USA, Donald Trump, more than 1,500 crypto entrepreneurs gathered in one of the city's historic buildings to celebrate the Republican's victory.
After years of strained relations with Washington politicians and regulators, the leaders of cryptocurrency companies, dressed in tuxedos and evening gowns, enjoyed exquisite cocktails and mini lobster rolls at the first-ever 'Crypto Ball.' The atmosphere was enhanced by performances from hip-hop stars Snoop Dogg, Rick Ross, and Soulja Boy.
The festive mood, sense of triumph, and belief in the bright future of the crypto industry were unexpectedly interrupted by Trump's social media announcement about the launch of his own cryptocurrency named $TRUMP. Later, his wife Melania also announced that she had launched a coin named after her.
Industry representatives were shocked not so much by the fact that the newly elected president launched his own cryptocurrency but by the fact that he took the easiest route: launching meme coins whose value depends solely on 'hype.'
By choosing to profit during his peak popularity, Trump has opened Pandora's box. The new model of launching tokens associated with political figures and celebrities could lead to the bankruptcies of many eager to make quick money.
Why did the decision of the 47th president of the USA to become part of the crypto market so infuriate its participants?
Sleight of hand and no fraud
The launch of his own coins by the newly elected president of the USA and his wife surprised many. The fact that his team chose the meme coin model created the impression that Trump wanted to quickly make money while the whole world would talk about him for a few days.
Unlike Bitcoin, which has its own blockchain (Bitcoin blockchain) and a network of miners to ensure its stability, the value of meme coins is largely determined by social media popularity, trends, and community activity, rather than technical or political factors.
Coins like $TRUMP are often a reaction to a certain cultural phenomenon or even a joke on social media. Their price is based on 'hype,' viral spread, and celebrity endorsements, depending on the popularity of the character or theme with which they are associated. In most cases, meme coins have no real application.
The first meme coin Dogecoin appeared in 2013. It was created as a joke, inspired by a popular meme featuring a Shiba Inu dog. However, thanks to the viral effect on social media, the token quickly gained popularity and became iconic in the crypto industry. Currently, one Dogecoin is worth $0.33. In May 2021, its price reached a peak of $0.75, but this is nothing compared to cryptocurrencies associated with the Trump family.
Dogecoin became well-known in the world thanks to the popular meme featuring a Shiba Inu dog.
Getty Images
Creating a meme coin is not difficult. With the right tools, it can be done on a blockchain like Ethereum in just a few hours. Trump's token was created on a similar blockchain platform, Solana.
The emergence of $TRUMP was so successful that it literally shook the market. In the first few days of its existence, the market capitalization of the meme coin of the 47th president of the USA exceeded $12 billion, and on the morning of January 20, its value skyrocketed from zero to over $70 per token.
Along with her husband, First Lady Melania also launched the cryptocurrency, causing $TRUMP to drop by over 40% to $38. After that, the price of the coin began to recover. Currently, 200 million Trump meme coins are in circulation, and within three years, they plan to release up to one billion, as stated on the official cryptocurrency website.
In fact, Trump decided to monetize his popularity through one of the most speculative types of cryptocurrency. This did not sit well with all representatives of the crypto community. The main argument of critics is that such actions will further undermine trust in a market that is already filled with fraudulent schemes and unscrupulous players.
Angela Volch, a research fellow at the Centre for Blockchain Technologies at University College London, called the situation disgraceful. 'The crypto sector has brought to power a person who, with his first step, decided to seize the opportunity for enrichment within this industry,' the researcher noted.
However, Trump's actions cannot be called fraud, believes Sergey Fursa, Deputy Director for Securities Trading at Dragon Capital (owner of UP). 'This is not fraud, as no one hides that this cryptocurrency has no intrinsic value other than Trump's name. But, on the other hand, it cannot be called an investment tool either,' he noted.
EP interlocutors in the crypto market most often cite two main reasons for Trump creating a cryptocurrency that bears his name: profit and consolidating supporters in an unconventional way for politicians.
A total of 1 billion coins were created, of which 800 million remained under the ownership of Trump Organization CIC Digital, while the remaining 200 million were released to the market on January 17 during the initial offering.
According to analysts from the research company K33, these 80% of tokens will not be sold immediately but will be gradually released over three years.
Although Trump has garnered support from leaders in the American crypto industry and promised to implement favorable regulations for digital assets, the release of his own meme coin raises doubts about the seriousness of his intentions. Moreover, this is not his first experience making money in the crypto world. In 2022, he earned millions from the release of NFTs where he was depicted as a superhero.
The first crypto president
Representatives of the cryptocurrency industry were among the most active in supporting Trump's election campaign. Moreover, they invested at least $131 million in the recent congressional elections to help elect dozens of pro-cryptocurrency lawmakers.
This is not surprising, as during the election campaign, Trump often referred to himself as the 'crypto president.' Back in 2021, Trump stated that Bitcoin and other cryptocurrencies 'could be a big scam' and that they 'undermine the authority of the dollar.' However, the newly elected president has promised to implement a number of initiatives that could change the regulatory policy of the USA regarding virtual assets.
After Trump's victory, Bitcoin rose to $89,000, and after his statement that Paul Atkins would become the head of the SEC, Bitcoin's price exceeded $100,000 for the first time. Additionally, Trump's victory contributed to a 152% increase in Dogecoin.
At the same time, the launch of their own meme coins by Trump and his wife has drawn criticism. Den Hughes, a representative of the crypto company Radix, believes such initiatives could undermine trust in the market since 'popularity and liquidity manipulation can become more important than the fundamental value of projects.'
Investment company Conotoxia believes that the introduction of these coins just a few days before the president's inauguration raises concerns about potential conflicts of interest and could undermine the dignity of the president and the first lady.
Family business and scam
In the first days of trading, $TRUMP demonstrated impressive growth. Many inexperienced investors and newcomers, reading the news, experienced the so-called fear of missing out. This is a psychological phenomenon where a person feels the fear of losing a lucrative opportunity or being left out of important events. This effect is especially common in investing, business, cryptocurrencies, and stock trading.
The team controlling the majority of $TRUMP tokens, led by CIC Digital, owned assets worth a nominal $51 billion on paper during the day. However, this amount was conditional, as any attempt to sell a significant portion of the tokens would result in a drop in their price.
The situation escalated when Melania launched her meme coin. This caused panic among investors who began selling $TRUMP to buy the new asset. Within an hour, the price of the president's meme coin fell from over $70 to $45.
The market frenzy became the perfect moment for real scammers to activate. According to a Global Ledger study, in the wave of growing interest in meme coins, they created new tokens with loud names like Milei, Melon Musk, OFFICIAL TRUMP, or even Vladimir Putin, hinting at well-known personalities. To make them more attractive, they began sending large volumes of these tokens to $TRUMP holders.
Everything seemed as if the major market players were investing in these coins themselves, which provoked a frenzy among traders. People began buying tokens and their price rapidly increased. But as soon as the activity peaked, fraudsters quickly sold their assets, cashing out millions of dollars.
This was the case with the token BARRON, which has no connection to Trump's younger son Barron. It temporarily reached a market capitalization of $460 million before collapsing by 95%.
Everything seemed as if the major market players were investing in these coins themselves, which provoked a frenzy among traders. People began buying tokens and their price rapidly increased. But as soon as the activity peaked, fraudsters quickly sold their assets, cashing out millions of dollars.
This was the case with the token BARRON, which has no connection to Trump's younger son Barron. It temporarily reached a market capitalization of $460 million before collapsing by 95%.
In just a few days, the organizers of such schemes earned over $857 million, according to Global Ledger. They withdrew their profits through major crypto exchanges.
This type of fraud is called pump and dump. It involves artificially inflating the value of an asset to sell it at an inflated price. One of its most notorious practitioners was Jordan Belfort, known as the 'Wolf of Wall Street.'
Equally interesting is the Trump family's business – the cryptocurrency project World Liberty Finance. Its launch took place in September 2024, the day after the assassination attempt on Donald.
Just hours before Trump's inauguration, the fund made a massive investment in cryptocurrencies totaling nearly $113 million. At the beginning of 2025, the fund's portfolio grew to $345 million. The bulk of the assets are made up of Ethereum (55%), USD Coin (15.6%), and Wrapped Bitcoin (13.3%), which are almost entirely part of the Ethereum network.
The project has also sparked a wave of discussions, as critics see it as a potential conflict of interest and risks of political influence on the crypto market.